: The South African IT market will continue to grow in local currency terms in 2016, but as wasthe case 2013-2015, we forecast contraction in US dollar terms due to rand depreciation against the USdollar and the negative impact on household purchasing power. The outlook for 2016 is however slightlyless challenging as economic conditions begin to ease, and over the medium term vendors will be able totarget growth opportunities as consumer and business sentiment strengthens. Nonetheless, the IT marketwill continue to primarily be driven by government spending via service expansion and modernisationprogrammes. There is also growing interest in IT solutions among SMEs looking to explore new sales andmarketing channels as well as improve their operational efficiencies, offering new opportunities andmaintaining South Africa's growth rate.

- Software Sales: ZAR18.0bn in 2016 to ZAR23.9bn in 2019, a CAGR of 9.2% in local currency terms.We believe the uptake of cloud-based software, which is less susceptible to piracy and through moreflexible pricing will deepen the market to SMEs, will drive growth in software sales over the mediumterm.

"Total spending in the cloud computing, network function virtualisation and software-defined networking markets will grow from USD7 billion in 2015 to USD28 billion in 2020, at a CAGR of 32%." Communications ...

“Factors such as growing demand for hybrid cloud storage, increasing need for enterprise mobility, and the need for reduced infrastructure cost are driving the cloud storage market” The cloud storage ...